Tangshan Mining Was Extended Credit Terms of 4/10 Net 30

question 142

Multiple Choice

Tangshan Mining was extended credit terms of 4/10 net 30. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, is closest to

• A) 76%
• B) 50.7%
• C) 75%
• D) 73%